MERGER TO CREATE THE WORLD’S LARGEST FRESH FRUIT AND VEGETABLE COMPANY
US manufacturer Dole Foods is to merge with Irish business Total Produce to create the world’s largest fresh fruit and vegetable supply business with annual sales of €8.2 billion.
The deal, which is subject to shareholder and regulatory approval, will create a new entity – Dole Plc – which analysts have said will make it double the size of its nearest rival, Del Monte Foods.
The combined company, operating under the Dole brand, will be incorporated in Ireland, with its global headquarters in Dublin, but will be listed in the US.
It hopes to raise €440-€575 million by way of a public flotation in the US later this year, possibly as early as June.
Total Produce bought a 45% stake in Dole in 2018, with the remaining 55% owned by Los Angeles-based Castle & Cook.
The new company will be headed by Rory Byrne, Chief Executive of Total Produce, while Dole Chief Executive Johan Lindén will become Chief Operating Officer.
Carl McCann, Chairman of Total Produce, said: “The deal combines two highly complementary premium businesses to create the global leader in fresh produce.“I am confident the combined business will open new avenues of value creation for shareholders and pursue innovation in healthy nutrition for our customers worldwide